Eurozone – German Preliminary GDP
On Wednesday, at GMT 6:00 a.m., the Destatis will release the quarter-over-quarter German Preliminary GDP figure, which measures the changes in the value of all products and services produced by the Germany economy. However, this figure is adjusted for inflation in order to provide a more accurate data.
Binary options traders consider the German GDP to be one of the most vital fundamental indicators of measure the production in the Eurozone economy, as German economy makes up a large part of the entire Eurozone economic activities.
Last quarter, the German preliminary GDP grew by 0.7% and the forecast for this quarter is currently set at a slightly lower rate of growth, at 0.5%
United States – Retail Sales
Later in the afternoon, at GMT 12:30 p.m., the US Census Bureau will release the national month-over-month retail sales figure, which measures the changes in the total value of all sales made at the retail level in the country over the past month.
Retail sales data are considered by binary options traders to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.
In April, the US retail sales value increased by as much as 0.9% and the forecast for May is set at a slightly lower rate of increase in value, at 0.3%
Trade Recommendation for the EUR/USD
Although the EUR/USD has been on a strong downtrend since the second quarter of 2014, in early April, it broke above the downward sloping trend line.
On April 29, the EUR/USD price finally broke above the 100% Fibonacci retracement level of the last downward swing, and subsequent bullish momentum pushed the price above the psychological resistance zone around 1.1100.
On May 5, the EUR/USD once again tested the 1.1100 level, which has turned into a support after the price penetrated above it, and formed a bullish pin bar. The bullish pin bar helped to push the price towards the 161.8% Fibonacci extension level.
Since last week, the EUR/USD has traded within a narrow range between 1.1100 and 1.1400.
As both the German preliminary GDP and the US retail sales figure are expected to grow at a slower rate in this month, the fundamental outlook or the EUR/USD would largely remain neutral.
In this situation, it is recommended that binary options traders consider placing a CALL order if the EUR / USD price once again bounce off the support around 1.1100 this week.
[featured feattitle=’Recommended Broker: HighLow.net’ site=’HighLow’ ] HighLow.net is a popular australian binary options broker regulated by ASIC. [/featured]About our Forex and Binary Options Analyst: Asif Imtiaz
- GBP/AUD Appears Bullish Amid Impressive Growth of Net Lending to Individuals in the UK - January 4, 2022
- AUD/CHF Likely to Break Above Key Resistance if Swiss Trade Balance Declines - December 20, 2021
- AUD/JPY Downtrend Line Likely to Hold the Bulls As Declining Japanese Household Spending Slowed Down - December 7, 2021
